The disgraced former FTX CEO Sam Bankman-Fried ‘SBF’ secured a $250 million bail Thursday from the US Federal court secured by the equity of his family home, according to coverage by the New York Times. The bailout restricts SBF from making financial transactions of more than $1,000, opening new lines of credit, and leaving his house (except when exercising). The Federal court has also directed that he undergoes a mental health check.
Bankman-Fried was extradited to the US Wednesday by the Federal Bureau of Investigation from the Bahamas to face eight counts of felony charges related to fraud, money laundering, and the violation of campaign financing by his cryptocurrency company, FTX.
While issuing the ruling, Judge Gabriel Gorenstein said that SBF would have a monitoring bracelet to track his movements, assuring that his fame would make it hard for him to flee. The former CEO will stay with his parents, who are required to secure the bail with their home equity before January 12. Sam’s parents – both Stanford law professors – were in the courtroom during the hearing.
See Related: From Bad To Good To Worse: The Binance And FTX Saga
Top SBF Executives Plead Guilty To Related Charges
His accomplices and former FTX and Alameda Research executives – Caroline Ellison and Gary Wang – have both pleaded guilty to related charges. The duo admitted that they violated securities laws, had an active role in defrauding investors, and knew they were breaking the laws in transferring customer money from the exchange to Alameda Research.
”Caroline Ellison and Sam Bankman-Fried schemed to manipulate the price of FTT, an exchange crypto security token that was integral to FTX, to prop up the value of their house of cards,” SEC said in a statement. It added: ”we further allege that Ms.Ellison and Mr.Wang played an active role in a scheme to misuse FTX customer assets to prop up Alameda and to post collateral for margin trading.”
The Federal court is accusing the former crypto billionaire (SBF) of fraud involving more than $8 billion from his customer before filing for bankruptcy protection in Delaware on November 11. The case – per the new FTX CEO John Ray overseeing the bankruptcy – is a ”complete failure of corporate control.”
